99.845. Tax increment financing adoption--division of ad valorem taxes--payments in lieu of tax, deposit, inclusion and exclusion of current equalized assessed valuation for certain purposes, when--ot - Missouri Statutes

Tax increment financing adoption--division of ad valoremtaxes--payments in lieu of tax, deposit, inclusion and exclusionof current equalized assessed valuation for certain purposes,when--other taxes included, amount--supplemental tax incrementfinancing fund established, disbursement.

99.845. 1. A municipality, either at the time a redevelopmentproject is approved or, in the event a municipality has undertaken actsestablishing a redevelopment plan and redevelopment project and hasdesignated a redevelopment area after the passage and approval of sections99.800 to 99.865 but prior to August 13, 1982, which acts are inconformance with the procedures of sections 99.800 to 99.865, may adopt taxincrement allocation financing by passing an ordinance providing that afterthe total equalized assessed valuation of the taxable real property in aredevelopment project exceeds the certified total initial equalizedassessed valuation of the taxable real property in the redevelopmentproject, the ad valorem taxes, and payments in lieu of taxes, if any,arising from the levies upon taxable real property in such redevelopmentproject by taxing districts and tax rates determined in the manner providedin subsection 2 of section 99.855 each year after the effective date of theordinance until redevelopment costs have been paid shall be divided asfollows:

(1) That portion of taxes, penalties and interest levied upon eachtaxable lot, block, tract, or parcel of real property which is attributableto the initial equalized assessed value of each such taxable lot, block,tract, or parcel of real property in the area selected for theredevelopment project shall be allocated to and, when collected, shall bepaid by the county collector to the respective affected taxing districts inthe manner required by law in the absence of the adoption of tax incrementallocation financing;

(2) (a) Payments in lieu of taxes attributable to the increase inthe current equalized assessed valuation of each taxable lot, block, tract,or parcel of real property in the area selected for the redevelopmentproject and any applicable penalty and interest over and above the initialequalized assessed value of each such unit of property in the area selectedfor the redevelopment project shall be allocated to and, when collected,shall be paid to the municipal treasurer who shall deposit such payment inlieu of taxes into a special fund called the "Special Allocation Fund" ofthe municipality for the purpose of paying redevelopment costs andobligations incurred in the payment thereof. Payments in lieu of taxeswhich are due and owing shall constitute a lien against the real estate ofthe redevelopment project from which they are derived and shall becollected in the same manner as the real property tax, including theassessment of penalties and interest where applicable. The municipalitymay, in the ordinance, pledge the funds in the special allocation fund forthe payment of such costs and obligations and provide for the collection ofpayments in lieu of taxes, the lien of which may be foreclosed in the samemanner as a special assessment lien as provided in section 88.861, RSMo.No part of the current equalized assessed valuation of each lot, block,tract, or parcel of property in the area selected for the redevelopmentproject attributable to any increase above the total initial equalizedassessed value of such properties shall be used in calculating the generalstate school aid formula provided for in section 163.031, RSMo, until suchtime as all redevelopment costs have been paid as provided for in thissection and section 99.850;

(b) Notwithstanding any provisions of this section to the contrary,for purposes of determining the limitation on indebtedness of localgovernment pursuant to article VI, section 26(b) of the MissouriConstitution, the current equalized assessed value of the property in anarea selected for redevelopment attributable to the increase above thetotal initial equalized assessed valuation shall be included in the valueof taxable tangible property as shown on the last completed assessment forstate or county purposes;

(c) The county assessor shall include the current assessed value ofall property within the taxing district in the aggregate valuation ofassessed property entered upon the assessor's book and verified pursuant tosection 137.245, RSMo, and such value shall be utilized for the purpose ofthe debt limitation on local government pursuant to article VI, section26(b) of the Missouri Constitution;

(3) For purposes of this section, "levies upon taxable real propertyin such redevelopment project by taxing districts" shall not include theblind pension fund tax levied under the authority of article III, section38(b) of the Missouri Constitution, or the merchants' and manufacturers'inventory replacement tax levied under the authority of subsection 2 ofsection 6 of article X of the Missouri Constitution, except inredevelopment project areas in which tax increment financing has beenadopted by ordinance pursuant to a plan approved by vote of the governingbody of the municipality taken after August 13, 1982, and before January 1,1998.

2. In addition to the payments in lieu of taxes described insubdivision (2) of subsection 1 of this section, for redevelopment plansand projects adopted or redevelopment projects approved by ordinance afterJuly 12, 1990, and prior to August 31, 1991, fifty percent of the totaladditional revenue from taxes, penalties and interest imposed by themunicipality, or other taxing districts, which are generated by economicactivities within the area of the redevelopment project over the amount ofsuch taxes generated by economic activities within the area of theredevelopment project in the calendar year prior to the adoption of theredevelopment project by ordinance, while tax increment financing remainsin effect, but excluding taxes imposed on sales or charges for sleepingrooms paid by transient guests of hotels and motels, taxes levied pursuantto section 70.500, RSMo, licenses, fees or special assessments other thanpayments in lieu of taxes and any penalty and interest thereon, or,effective January 1, 1998, taxes levied pursuant to section 94.660, RSMo,for the purpose of public transportation, shall be allocated to, and paidby the local political subdivision collecting officer to the treasurer orother designated financial officer of the municipality, who shall depositsuch funds in a separate segregated account within the special allocationfund. Any provision of an agreement, contract or covenant entered intoprior to July 12, 1990, between a municipality and any other politicalsubdivision which provides for an appropriation of other municipal revenuesto the special allocation fund shall be and remain enforceable.

3. In addition to the payments in lieu of taxes described insubdivision (2) of subsection 1 of this section, for redevelopment plansand projects adopted or redevelopment projects approved by ordinance afterAugust 31, 1991, fifty percent of the total additional revenue from taxes,penalties and interest which are imposed by the municipality or othertaxing districts, and which are generated by economic activities within thearea of the redevelopment project over the amount of such taxes generatedby economic activities within the area of the redevelopment project in thecalendar year prior to the adoption of the redevelopment project byordinance, while tax increment financing remains in effect, but excludingpersonal property taxes, taxes imposed on sales or charges for sleepingrooms paid by transient guests of hotels and motels, taxes levied pursuantto section 70.500, RSMo, taxes levied for the purpose of publictransportation pursuant to section 94.660, RSMo, licenses, fees or specialassessments other than payments in lieu of taxes and penalties and interestthereon, or any sales tax imposed by a county with a charter form ofgovernment and with more than six hundred thousand but fewer than sevenhundred thousand inhabitants, for the purpose of sports stadiumimprovement, shall be allocated to, and paid by the local politicalsubdivision collecting officer to the treasurer or other designatedfinancial officer of the municipality, who shall deposit such funds in aseparate segregated account within the special allocation fund.

4. Beginning January 1, 1998, for redevelopment plans and projectsadopted or redevelopment projects approved by ordinance and which havecomplied with subsections 4 to 12 of this section, in addition to thepayments in lieu of taxes and economic activity taxes described insubsections 1, 2 and 3 of this section, up to fifty percent of the newstate revenues, as defined in subsection 8 of this section, estimated forthe businesses within the project area and identified by the municipalityin the application required by subsection 10 of this section, over andabove the amount of such taxes reported by businesses within the projectarea as identified by the municipality in their application prior to theapproval of the redevelopment project by ordinance, while tax incrementfinancing remains in effect, may be available for appropriation by thegeneral assembly as provided in subsection 10 of this section to thedepartment of economic development supplemental tax increment financingfund, from the general revenue fund, for distribution to the treasurer orother designated financial officer of the municipality with approved plansor projects.

5. The treasurer or other designated financial officer of themunicipality with approved plans or projects shall deposit such funds in aseparate segregated account within the special allocation fund establishedpursuant to section 99.805.

6. No transfer from the general revenue fund to the Missourisupplemental tax increment financing fund shall be made unless anappropriation is made from the general revenue fund for that purpose. Nomunicipality shall commit any state revenues prior to an appropriationbeing made for that project. For all redevelopment plans or projectsadopted or approved after December 23, 1997, appropriations from the newstate revenues shall not be distributed from the Missouri supplemental taxincrement financing fund into the special allocation fund unless themunicipality's redevelopment plan ensures that one hundred percent ofpayments in lieu of taxes and fifty percent of economic activity taxesgenerated by the project shall be used for eligible redevelopment projectcosts while tax increment financing remains in effect. This account shallbe separate from the account into which payments in lieu of taxes aredeposited, and separate from the account into which economic activity taxesare deposited.

7. In order for the redevelopment plan or project to be eligible toreceive the revenue described in subsection 4 of this section, themunicipality shall comply with the requirements of subsection 10 of thissection prior to the time the project or plan is adopted or approved byordinance. The director of the department of economic development and thecommissioner of the office of administration may waive the requirement thatthe municipality's application be submitted prior to the redevelopmentplan's or project's adoption or the redevelopment plan's or project'sapproval by ordinance.

8. For purposes of this section, "new state revenues" means:

(1) The incremental increase in the general revenue portion of statesales tax revenues received pursuant to section 144.020, RSMo, excludingsales taxes that are constitutionally dedicated, taxes deposited to theschool district trust fund in accordance with section 144.701, RSMo, salesand use taxes on motor vehicles, trailers, boats and outboard motors andfuture sales taxes earmarked by law. In no event shall the incrementalincrease include any amounts attributable to retail sales unless themunicipality or authority has proven to the Missouri development financeboard and the department of economic development and such entities havemade a finding that the sales tax increment attributable to retail sales isfrom new sources which did not exist in the state during the baseline year.The incremental increase in the general revenue portion of state sales taxrevenues for an existing or relocated facility shall be the amount thatcurrent state sales tax revenue exceeds the state sales tax revenue in thebase year as stated in the redevelopment plan as provided in subsection 10of this section; or

(2) The state income tax withheld on behalf of new employees by theemployer pursuant to section 143.221, RSMo, at the business located withinthe project as identified by the municipality. The state income taxwithholding allowed by this section shall be the municipality's estimate ofthe amount of state income tax withheld by the employer within theredevelopment area for new employees who fill new jobs directly created bythe tax increment financing project.

9. Subsection 4 of this section shall apply only to blighted areaslocated in enterprise zones, pursuant to sections 135.200 to 135.256, RSMo,blighted areas located in federal empowerment zones, or to blighted areaslocated in central business districts or urban core areas of cities whichdistricts or urban core areas at the time of approval of the project byordinance, provided that the enterprise zones, federal empowerment zones orblighted areas contained one or more buildings at least fifty years old;and

(1) Suffered from generally declining population or property taxesover the twenty-year period immediately preceding the area's designation asa project area by ordinance; or

(2) Was a historic hotel located in a county of the firstclassification without a charter form of government with a populationaccording to the most recent federal decennial census in excess of onehundred fifty thousand and containing a portion of a city with a populationaccording to the most recent federal decennial census in excess of threehundred fifty thousand.

10. The initial appropriation of up to fifty percent of the new staterevenues authorized pursuant to subsections 4 and 5 of this section shallnot be made to or distributed by the department of economic development toa municipality until all of the following conditions have been satisfied:

(1) The director of the department of economic development or his orher designee and the commissioner of the office of administration or his orher designee have approved a tax increment financing application made bythe municipality for the appropriation of the new state revenues. Themunicipality shall include in the application the following items inaddition to the items in section 99.810:

(a) The tax increment financing district or redevelopment area,including the businesses identified within the redevelopment area;

(b) The base year of state sales tax revenues or the base year ofstate income tax withheld on behalf of existing employees, reported byexisting businesses within the project area prior to approval of theredevelopment project;

(c) The estimate of the incremental increase in the general revenueportion of state sales tax revenue or the estimate for the state income taxwithheld by the employer on behalf of new employees expected to fill newjobs created within the redevelopment area after redevelopment;

(d) The official statement of any bond issue pursuant to thissubsection after December 23, 1997;

(e) An affidavit that is signed by the developer or developersattesting that the provisions of subdivision (1) of section 99.810 havebeen met and specifying that the redevelopment area would not be reasonablyanticipated to be developed without the appropriation of the new staterevenues;

(f) The cost-benefit analysis required by section 99.810 includes astudy of the fiscal impact on the state of Missouri; and

(g) The statement of election between the use of the incrementalincrease of the general revenue portion of the state sales tax revenues orthe state income tax withheld by employers on behalf of new employees whofill new jobs created in the redevelopment area;

(h) The name, street and mailing address, and phone number of themayor or chief executive officer of the municipality;

(i) The street address of the development site;

(j) The three-digit North American Industry Classification Systemnumber or numbers characterizing the development project;

(k) The estimated development project costs;

(l) The anticipated sources of funds to pay such development projectcosts;

(m) Evidence of the commitments to finance such development projectcosts;

(n) The anticipated type and term of the sources of funds to pay suchdevelopment project costs;

(o) The anticipated type and terms of the obligations to be issued;

(p) The most recent equalized assessed valuation of the propertywithin the development project area;

(q) An estimate as to the equalized assessed valuation after thedevelopment project area is developed in accordance with a developmentplan;

(r) The general land uses to apply in the development area;

(s) The total number of individuals employed in the development area,broken down by full-time, part-time, and temporary positions;

(t) The total number of full-time equivalent positions in thedevelopment area;

(u) The current gross wages, state income tax withholdings, andfederal income tax withholdings for individuals employed in the developmentarea;

(v) The total number of individuals employed in this state by thecorporate parent of any business benefiting from public expenditures in thedevelopment area, and all subsidiaries thereof, as of December thirty-firstof the prior fiscal year, broken down by full-time, part-time, andtemporary positions;

(w) The number of new jobs to be created by any business benefitingfrom public expenditures in the development area, broken down by full-time,part-time, and temporary positions;

(x) The average hourly wage to be paid to all current and newemployees at the project site, broken down by full-time, part-time, andtemporary positions;

(y) For project sites located in a metropolitan statistical area, asdefined by the federal Office of Management and Budget, the average hourlywage paid to nonmanagerial employees in this state for the industriesinvolved at the project, as established by the United States Bureau ofLabor Statistics;

(z) For project sites located outside of metropolitan statisticalareas, the average weekly wage paid to nonmanagerial employees in thecounty for industries involved at the project, as established by the UnitedStates Department of Commerce;

(aa) A list of other community and economic benefits to result fromthe project;

(bb) A list of all development subsidies that any business benefitingfrom public expenditures in the development area has previously receivedfor the project, and the name of any other granting body from which suchsubsidies are sought;

(cc) A list of all other public investments made or to be made bythis state or units of local government to support infrastructure or otherneeds generated by the project for which the funding pursuant to thissection is being sought;

(dd) A statement as to whether the development project may reduceemployment at any other site, within or without the state, resulting fromautomation, merger, acquisition, corporate restructuring, relocation, orother business activity;

(ee) A statement as to whether or not the project involves therelocation of work from another address and if so, the number of jobs to berelocated and the address from which they are to be relocated;

(ff) A list of competing businesses in the county containing thedevelopment area and in each contiguous county;

(gg) A market study for the development area;

(hh) A certification by the chief officer of the applicant as to theaccuracy of the development plan;

(2) The methodologies used in the application for determining thebase year and determining the estimate of the incremental increase in thegeneral revenue portion of the state sales tax revenues or the state incometax withheld by employers on behalf of new employees who fill new jobscreated in the redevelopment area shall be approved by the director of thedepartment of economic development or his or her designee and thecommissioner of the office of administration or his or her designee. Uponapproval of the application, the director of the department of economicdevelopment or his or her designee and the commissioner of the office ofadministration or his or her designee shall issue a certificate ofapproval. The department of economic development may request theappropriation following application approval;

(3) The appropriation shall be either a portion of the estimate ofthe incremental increase in the general revenue portion of state sales taxrevenues in the redevelopment area or a portion of the estimate of thestate income tax withheld by the employer on behalf of new employees whofill new jobs created in the redevelopment area as indicated in themunicipality's application, approved by the director of the department ofeconomic development or his or her designee and the commissioner of theoffice of administration or his or her designee. At no time shall theannual amount of the new state revenues approved for disbursements from theMissouri supplemental tax increment financing fund exceed thirty-twomillion dollars;

(4) Redevelopment plans and projects receiving new state revenuesshall have a duration of up to fifteen years, unless prior approval for alonger term is given by the director of the department of economicdevelopment or his or her designee and the commissioner of the office ofadministration or his or her designee; except that, in no case shall theduration exceed twenty-three years.

11. In addition to the areas authorized in subsection 9 of thissection, the funding authorized pursuant to subsection 4 of this sectionshall also be available in a federally approved levee district, whereconstruction of a levee begins after December 23, 1997, and which iscontained within a county of the first classification without a charterform of government with a population between fifty thousand and one hundredthousand inhabitants which contains all or part of a city with a populationin excess of four hundred thousand or more inhabitants.

12. There is hereby established within the state treasury a specialfund to be known as the "Missouri Supplemental Tax Increment FinancingFund", to be administered by the department of economic development. Thedepartment shall annually distribute from the Missouri supplemental taxincrement financing fund the amount of the new state revenues asappropriated as provided in the provisions of subsections 4 and 5 of thissection if and only if the conditions of subsection 10 of this section aremet. The fund shall also consist of any gifts, contributions, grants orbequests received from federal, private or other sources. Moneys in theMissouri supplemental tax increment financing fund shall be disbursed perproject pursuant to state appropriations.

13. Redevelopment project costs may include, at the prerogative ofthe state, the portion of salaries and expenses of the department ofeconomic development and the department of revenue reasonably allocable toeach redevelopment project approved for disbursements from the Missourisupplemental tax increment financing fund for the ongoing administrativefunctions associated with such redevelopment project. Such amounts shallbe recovered from new state revenues deposited into the Missourisupplemental tax increment financing fund created under this section.

14. For redevelopment plans or projects approved by ordinance thatresult in net new jobs from the relocation of a national headquarters fromanother state to the area of the redevelopment project, the economicactivity taxes and new state tax revenues shall not be based on acalculation of the incremental increase in taxes as compared to the baseyear or prior calendar year for such redevelopment project, rather theincremental increase shall be the amount of total taxes generated from thenet new jobs brought in by the national headquarters from another state.In no event shall this subsection be construed to allow a redevelopmentproject to receive an appropriation in excess of up to fifty percent of thenew state revenues.

(L. 1982 H.B. 1411 & 1587 § 8 subsec. 1, A.L. 1986 S.B. 664 merged with H.B. 989 & 1390, A.L. 1990 H.B. 1564, A.L. 1991 H.B. 502, A.L. 1997 2d Ex. Sess. S.B. 1, A.L. 1998 S.B. 707 & 484, A.L. 2003 S.B. 620 and H.B. 289 merged with S.B. 235, A.L. 2005 S.B. 343, A.L. 2006 H.B. 1688)